Copart Inc (NASDAQ:CPRT) stock rose 0.43% (As on February 23, 11:26:47 AM UTC-4, Source: Google Finance) after the company missed second-quarter revenue estimates due to lower vehicle sales. CPRT’s fiscal second-quarter service revenues came in at $861.7 million, which increased from $789.8 million recorded in the year-ago period but missed the Zacks Consensus Estimate of $870 million. Service revenues accounted for 84.5% of total revenues. Vehicle sales totaled $158.4 million in the quarter, which declined from the prior year’s level of $166.9 million and missed the Zacks Consensus Estimate of $178 million. While yard operations expenses rose 7.7% year over year to $366.3 million, the cost of vehicle sales was down 5.1% to $146.8 million. Yard depreciation and amortization came in at $41.2 million, up 21% year over year. Yard stock-based compensation increased 21.3% to $1.6 million. Gross profit was up 8.8% year over year to $464.2 million. General and administrative expenses rose 51.9% from the prior-year quarter to $72.7 million. Total operating expenses flared up 8.3% to $640.3 million.Operating income rose to $379.9 million from $365.5 million recorded in the year-ago quarter amid high sales despite the rise in expenses. Net income also shot up 10.8% year over year to $325.5 million.

CPRT in the second quarter of FY 24 has reported the adjusted earnings per share of 33 cents, beating the analysts’ estimates for the adjusted earnings per share of 30 cents. The company had reported the adjusted revenue growth of 6.6 percent to $1.02 billion in the second quarter of FY 24, missing the analysts’ estimates for revenue of $1.03 billion, according to LSEG data. Copart had cash, cash equivalents and restricted cash of $1.26 billion as of Jan 31, 2024, compared with $957.4 million as of Jul 31, 2023. Long-term debt and other liabilities declined to $0.45 million at the end of the reported quarter from $10.9 million as of Jul 31, 2023. Net cash from operating activities during the first six months of fiscal 2024 totaled $537 million, up from $499.8 million in the year-ago period. Capex during the first six months of fiscal 2024 was $285.3 million, up 11.1% year over year.

In addition, for the six months ended January 31, 2024, revenue, gross profit, and net income attributable to Copart Inc. were $2.04 billion, $928.2 million, and $658.2 million, respectively. These represent an increase in revenue of $190.5 million, or 10.3%; an increase in gross profit of $132.2 million, or 16.6%; and an increase in net income attributable to Copart Inc. of $118.6 million, or 22.0%, respectively, from the same period last year.